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Main => General Discussion => Topic started by: litepresence on February 07, 2020, 05:15:49 pm

Title: Quadratic Pegged Assets
Post by: litepresence on February 07, 2020, 05:15:49 pm
I've been contemplating issuing a concept I'm calling "quadratic pegged assets".

The aim is to back them with BTS and have the IPO come in near 1:1, then control the price feeds with a combination of "MPA" logic like "bitassets" or "honest mpas" and "APA" logic like "hertz" or "hero".

So the risk and reward of each is leveraged by a squared factor instead of typical coefficient leverage provided by centralized exchanges

this means for example:

BTC:USD goes up by factor 2X the QPA goes up by factor 4X
BTC:USD goes up by factor 10X the QPA goes up by factor 100X

and then on the down side:

BTC:USD goes down by factor 0.5X the QPA goes down by factor 0.25X; 75% loss


These are the 4 equations I'm currently considering,
each contains a coefficient times a market pair price; quantity squared:
(coeff * price) ^ 2

Bitcoin to US Dollar Quadratic Pegged Asset
Code: [Select]
(0.0001*BTC:USD) ^ 2
(0.0001 × 9,732) ^ 2 = 0.95 IPO (https://imgur.com/cgpISbW.png)

Bitshares to Bitcoin Quadratic Pegged Asset
Code: [Select]
(300000×BTS:BTC)^2
(300000*0.00000333)^2 = 0.99 IPO (https://imgur.com/sBFTuJw.png)

Silver to Gold Quadratic Pegged Asset
Code: [Select]
(100 * XAG / XAU) ^ 2
(100 * 0.01128) ^ 2 = 1.27 IPO (https://imgur.com/C7Rnpd6.png)

S&P Commodity Index to S&P Stock Index Quadratic Pegged Asset
Code: [Select]
(10*SPGSCI/SP500) ^ 2
(10*296.87 / 3,335.15) ^ 2 = 0.79 IPO(https://imgur.com/ItVho16.png)
Title: Re: Quadratic Pegged Assets
Post by: bench on February 07, 2020, 05:58:15 pm
I like the concept!
Title: Re: Quadratic Pegged Assets
Post by: abit on February 07, 2020, 06:24:28 pm
There was a similar discussion in the past. Check asset SQUARED.CNY, CUBED.USD and etc. Or search in the forum.

Update:
found the link: https://bitsharestalk.org/index.php?topic=26322.0
Title: Re: Quadratic Pegged Assets
Post by: litepresence on February 07, 2020, 06:31:00 pm
Quote from: abit on February 07, 2020, 06:24:28 pm
There was a similar discussion in the past. Check asset SQUARED.CNY, CUBED.USD and etc. Or search in the forum.

Update:
found the link: https://bitsharestalk.org/index.php?topic=26322.0

sweet, will check them out!
Title: Re: Quadratic Pegged Assets
Post by: BitsharesLabs on February 08, 2020, 10:53:29 am
That's one interesting concept!